Which of the Following Is a True Statement About the Employer-Employee

question 88

Multiple Choice

Which of the following is a true statement about the employer-employee relationship?

• A) The critical factor in this relationship is control. That is, the employer tells the employee not only what to do but also how to do it.
• B) An employee for a company could not also be an agent at the same time for the company.
• C) One responsibility of an employer is to provide the employee with lifetime work availability.
• D) An employee does not owe a fiduciary duty to his or her employer.
• E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.

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Definitions:

Earnings Yields

The inverse of the price-to-earnings ratio, representing the earnings generated by a company per share relative to its share price, often used to compare the profitability of investments.

Treasury Yields

The returns on government securities that are considered risk-free; they serve as a benchmark for other interest rates.

Market-to-Book Ratio

A financial ratio that compares a company's market value (price of its stock) to its book value (total assets minus liabilities), used to evaluate whether a stock is under or overvalued.

Price-to-Sales Ratio

A valuation ratio comparing a company's stock price to its revenues, used to evaluate the company's size and growth potential.